• EUR/JPY may explore the region around the record high of 177.94.
• The short-term momentum remains stronger as the currency cross is positioned above the nine-day EMA.
• The primary support lies at the nine-day EMA of 176.15.

EUR/JPY extends its gains for the third successive session, trading around 177.00 during the European hours on Thursday. The technical analysis of the daily chart indicates that bullish bias is strengthening as the currency cross remains within the ascending channel pattern.

The short-term price momentum is stronger as the EUR/JPY cross remains above the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) remains above the 50 level, reinforcing the bullish bias. A move toward the 70 mark would further strengthen this bias before signaling overbought conditions.

On the upside, a successful breach above the psychological level of 177.00 would lead the EUR/JPY cross to approach the all-time high of 177.94, which was recorded on October 9. A break above this level would open the door for the currency cross to explore the region around the upper boundary of the ascending channel around 182.10.

The EUR/JPY cross may find its immediate support at the nine-day EMA of 176.15, followed by the ascending channel’s lower boundary around 175.90. Further declines below this confluence support zone would weaken the short-term price momentum and bullish bias to tame the currency cross to navigate the region around the 50-day EMA at 174.05.

A break below the 50-day EMA would dampen the medium-term price momentum and prompt the EUR/JPY cross to test the six-week low of 172.14, which was recorded on September 9.

EUR/JPY: Daily Chart